STX Stock On Track To Hit Fresh Record Highs — Here’s Why Morgan Stanley, Citi, Mizuho See Further Upside

• Morgan Stanley raised its price target on Seagate shares to $767 from $582 while keeping an ‘Overweight’ rating.
• Mizuho also increased its price target on STX to $700 from $565 and kept an ‘Outperform’ rating.
• A Citi analyst said Seagate’s demand continues to be stronger than expected.

Shares of Seagate Technology Holdings (STX) rose more than 17% premarket on Wednesday and are on track to hit fresh record highs after Wall Street expressed optimism following the upbeat quarterly report.

Multiple analysts have raised their price targets, confirming that the demand for storage chips and components remains elevated.

Morgan Stanley, Mizuho, Citi Hike Price Targets

According to Investing.com, Morgan Stanley raised its price target on Seagate shares to $767 from $582 while keeping an ‘Overweight’ rating.  STX stock closed at $579 on Tuesday. The new target implies a 32% premium on current levels.

Morgan Stanley said its previous bull-case scenario has now become its base-case view for the third consecutive quarter, as pricing, gross margins, and earnings power continue to exceed even its own above-consensus estimates.

The firm also added that the explosive growth in tokens and new AI applications is driving faster data expansion and longer data retention requirements, with hard disk drives still capturing roughly 80% of cloud storage demand.

Meanwhile, Mizuho also increased its price target on STX to $700 from $565 and kept an ‘Outperform’ rating, according to an Investing.com report.

The firm said Seagate’s Mosaic3 technology is scaling with all major U.S. cloud providers, while Mosaic4 has already been approved by the two biggest cloud players and is ramping up production in the June quarter. Nearline exabytes shipped in March rose 6% from the prior quarter, powered by hyperscaler demand.

Mizuho sees Mosaic4 accounting for more than 50% of Heat-Assisted Magnetic Recording (HAMR) exabytes by the end of 2026, with HAMR drives making up approximately 70% of total exabyte shipments by mid-2027. The firm's new price target values the stock at about 29 times its fiscal 2027 earnings estimate.

Citi analyst Asiya Merchant also raised STX's price target to $740 from $595 and kept a ‘Buy’ rating. The analyst said Seagate’s demand continues to be stronger than expected, according to The Fly.

STX Forecast Better Than Expected Fourth Quarter Earnings

Seagate forecast fiscal fourth-quarter ​revenue with a midpoint of $3.45 ​billion, plus ⁠or minus $100 million, compared with estimates of $3.16 billion from LSEG/Reuters.

It projected quarterly adjusted profit of $5 per share, plus or minus $0.20, while analysts expected $3.97 per share. The company said its outlook assumes minimal expected impact from tariff policies or the war in Iran.

In the fiscal third quarter, revenue rose 44% to $3.11 billion, above analysts' expectations of $2.96 billion. On an adjusted basis, earnings were $4.10 a share versus the expectation of $3.51 a share.

​How Did Retail Traders React?

On Stocktwits, retail sentiment surrounding the stock has improved to ‘extremely bullish’ from ‘bullish’, while message volume also improved to ‘extremely high’ from ‘normal’.

Shares of Seagate Technologies have climbed more than 101% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: GNRC Stock Just Shot Up 12% – These Factors Helped The Company Raise Sales Growth, EBITDA Margin Outlook For 2026